Durham Accommodation Snapped up by Tier One Capital

Tier One Capital has acquired a Durham student accommodation scheme in a deal worth £2.3m.

Purchased on behalf of developers, the Newcastle based company is deploying cash it raised within its TOC Property Backed Lending Trust which was floated last month.

Upon its flotation at the end of January it raised £17.3m, with a large proportion of the funds to be put towards 10 initial projects.

The first is the acquisition of the 34-bed student accommodation scheme at St Hilds, Durham, for Ryka Developments.

A spokesman for Ryka Developments said: "The forthcoming expansion of the Durham University campus in the immediate vicinity of St Hilds adds further attraction to an asset capable of producing long-term income for the next twenty years and beyond."

Set up in 2012, Tier One Capital has developed into an investment company supporting private and corporate clients, charities and trusts with a range of services including cash management, investments, estate planning and corporate finance.

The company's growth has recently surged with the launch of its TOC Property Backed Lending Trust, which it hopes to grow into a £500 million fund, with the money raised to be invested into the regionâs growing property market.